Monday, December 12, 2011

Two must read articles on active management and fees.

Articles on active management and fees may sound a little boring, but let's be very clear here: two of the three most reliable ways to increase your retirement wealth involve 1) avoiding actively managed funds and picking index funds, and 2) never paying someone a fixed fee to manage your money.   

Ron at the InvestorCookbooks blog has two great posts on these topics.  First, more compelling evidence on the futility of active management.   And second, the effects of paying a 1% management fee to your financial planner.

And, in case you were wondering, the third way to increase your retirement wealth is to save more.  



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